Gold Demand in Dubai

Buying Gold in Dubai Souks is regarded as a trend. People here has a huge crush over this glittering precious metal. The first month of every year is considered as Shopping Festival. Demand of Gold was a bit slow with start of January 2015, as compared to the previous year. But According to Tawhid Abdullah, chairman of the Dubai Gold & Jewellery Group, a retailer in the gold souk confers that the slow rate is now speed up. The reasons to set back was due to Gold’s Higher Prices. 

This precious metal is most demanded in January being the shopping Festival. Gold Jewelers faces a huge demand during the month long. Hence, Industries are expecting that the sales may jump to 10 percent. Prices are later rebounded with the fall in prices after end of January. According to the data collected of 2014, the industry this year made sale 8 per cent higher than the last year. January 2015 faces its highest jump in prices after five months that raised the demand just by 2-3 percent compared to the last year.

Current sources expects the sale of Gold Jewelry will make a collection of about 15 billion Dirhams ($4.08 billion) or about 10 Metric Tons. Prices of Gold this year has climbed with 4.5 percent which is $1237.10 an ounce. Frederic Panizzutti, global head of sales and business development for MKS Pamp Group said that there is no Physical Demand. In spite of its slow demand, Gold is trading with a discount of $ 1.20 an ounce in Dubai. The buyers are waiting for more fall in prices. Tawhid Abdulla, a retailer of Gold Jewelry, made an estimation of Online Gold Trading between $1, 00 to $1,300 an ounce this year.